Zimmer Biomet Holdings Inc.

At the same time, we believe Zimmer's position in the knee and hip markets weakened due to supply chain constraints over the past few years. Recapturing lost market share may be difficult. Orthopedic market share tends to be very sticky because the use of new products in orthopedic procedures requires extensive training, making surgeons more reluctant to switch brands. This makes it easier for industry incumbents to defend their market position, but it also makes recapturing share much harder. In addition, although mature, the orthopedic market is very competitive. While ROSA is unique in that it is cleared for knee, brain, and spine, this will not be the first robotic system on the market used for total knee arthroplasty. ROSA's

...New product launches and supply chain recovery will position the company for sustainable revenue growth starting in 2020. However, we don't expect the growth rate to exceed the low-single¡digit percentages as recapturing lost market share may be a difficult process. We expect Zimmer Biomet Holdings Inc.'s ROSA robotic surgery system and Persona Revision Knee product to be the key growth drivers in 2020. In the first half of 2019, Zimmer secured a number of important regulatory clearances for knee, brain, and spine applications for the ROSA platform, making it the only company with robotic offerings across all three areas. In addition, Zimmer recently received U.S. Food and Drug Administration (FDA) clearance for its Persona Revision Knee product, which fills the final gap in Zimmer's knee product portfolio. It potentially can accelerate the use of Persona primary knee products. Usually surgeons do not like to mix primary knee systems with the revision systems of different brands, which...

Full Report